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Apollo Gold, Linear Gold one step closer to completing merger

By officially entering into a definitive arrangement agreement, Apollo Gold Corporation (TSX:APG) and Linear Gold Corp. (TSX:LRR) are one step closer to completing a merger first announced in early March.
Northern Ontario Business Staff

By officially entering into a definitive arrangement agreement, Apollo Gold Corporation (TSX:APG) and Linear Gold Corp. (TSX:LRR) are one step closer to completing a merger first announced in early March.

The deal has yet to clear certain conditions, such as the approval of shareholders of both companies. If successful, officials from both companies anticipate the merger will complete in June 2010.

Apollo's Black Fox Mine near Timmins began gold production in May 2009, and is slated to produce 100,000 ounces of gold in 2010 at a cash cost of US$500 to $550 per ounce produced. Exploration is also ongoing at the company's nearby Grey Fox and Pike River properties.

Linear's flagship development property is located near Uranium City, Saskatchewan, and is estimated to become a 70,000 to 90,000 ounces per year gold producer.